Croatian Government to Step in to Save Uljanik Shipyard

After missing payroll in December, Uljanik Shipyard will turn to the Croatian government for loan guarantees of up to 96 million euro in hopes to restructure the yard and continue operations.

The loan guarantee is subject to approval from the European Commission.

Yard management met with unions on Monday, with unions eyeing a potential work stoppage if salaries are not paid out this week, according to Croatian media reports.

Should the loan guarantee come in, it will provide the necessary financing to carry the shipyard through April. Loan conditions require repayment in six months, and call for the shipyard to implement a restructuring plan that requires finding a “strategic partner.”

The Scenic Eclipse is currently under construction at the Croatian yard, and is set for an August delivery.